Artificial Intelligence Technology Solutions Inc (AITX)

[JustJack]

Where is Romeo???

RAD has had no contact with SMP Robotics since April 2018.

Background - First Commercial Rugged Outdoor Security Robot.

Mr. Reinharz started RAD in the summer of 2016. RAD originally partnered with SMP Robotics Systems Corp. (SMP) and
commercialized the SMP S5 Robot for the security market. RAD’s commercialization of the platform focused on integrating traditional
security industry manufacturers’ solutions onto the robotics platform. After two paid proofs-of-concept for large utility companies (under
NDA) and over 18 months of development and testing, RAD began deployments with various Fortune 500 customers. These deployments
were scheduled to start in October 2017 but were delayed until December 2017 due to various supply chain challenges.

By March 2018 it was apparent that S5 platform was not sustainable and RAD began to pull robots out of service.

The robots were rejected by customers due to unsatisfactory reliability and some technical flaws that could not be solved, despite full
efforts by SMP and RAD. RAD now considers this phase of the company ‘Phase 1’ into robotics. The Company attempted over 40
deployments during this period.
RAD has had no contact with SMP Robotics since April 2018.

Much of RAD’s existing convertible debt was acquired in support of the RAD/SMP robotics program. This convertible debt has largely
been converted to long-term debt and warrants as shown in these financial filings.